The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.

The General Manager (GM) of a car dealership is working on a three year business plan. The GM expects inflation to rise over the next three years.

1. How will higher inflation affect the number of vehicles the dealership can sell?

2. Based on the GM’s inflation expectation what type of loan should the dealership arrange with its bank in order finance its inventory of

automobiles?

Higher inflation will lower the number of vehicles the dealership can sell this is because pricesof cars shoots up due to the high cost of production hence becomes hard for the potentialconsumers...